STARTUP CLOUD
photos: flickr.com & co.
OF ATLANTA
explained
Understanding Startup cloud – Atlanta Entrepreneurship community – phase 2. For
activists. by Konstantyn Spasokukotskiy
by Konstantyn put simple

PART 1
SITUATION CHALLENGE
&

The real entrepreneurial
scene in general and in
Atlanta particularly is
hard to assess. The
reality can be dissected
Amount of PLAYERS
many different ways.
Though, there are two
major players: investors
and entrepreneurs. And
there are two major
determinants: the
amount of players and
the risk one can invest in
or risk one offers as a
RISK characteristics of her
venture.

Capitalists are major
player on the startup
Amount of PLAYERS
scene. The real landscape
is hard to quantify. The
relation between risk and
players can be a distorted
line. It is especially true if
cartels dominate the
market. The general
tendency is though that
the higher risk the less
RISK amount of investors is
ready to strike a deal.

Entrepreneurs are major
player on the startup
scene. The amount of
entrepreneurs is generally
big. The more people you
include in the stats (think
about your mom) the
more ideas are out there
(think about mom’s rosy
Amount of PLAYERS
aluminum foil).
Unfortunately the
sophistication and viability
of the ideas decreases
rapidly. It transforms into
higher risks of investment
not fundable
for such ventures. At some
point the number of
players stabilizes as fewer
RISK people want to disclose
lunacy ideas.

capitalists
Amount of PLAYERS
entrepreneurs
Should a venture risk
profile fit into investors’
fundable not fundable expectations, a funding
ventures
deal occurs. The total
amount of deals is
RISK included in the area
“fundable ventures”

PROBLEM
N T
A D
W E
capitalists
Amount of PLAYERS
potential entrepreneurs
capital
r
The problem identified by
o
f
Scott is that at any given
time there is capital
g
available for funding. It is
d in
unmatched by respectively
low risk profile ventures.
n
Where there is a problem
fu
RISK there is a solution. More
about the solution later.

PROBLEM
My personal take is that
there are several other
problems. One of them is
capitalists investors’ sophistication.
Amount of PLAYERS
entrepreneurs If sophistication increases,
the capitalists curve will
flatten expanding into
higher risk area. This will
not fundable truly help the community,
since more diversity will
be involved, more people
will experience success,
the career path into
cut off line RISK entrepreneurship will be
more attractive.

PROBLEM
Another problem is
amount of investors
present on the market. If
the total amount of
capitalists investors is low, the most
Amount of PLAYERS
deals are in the
entrepreneurs transparency swamp area.
This is where equally good
transparency swamp
ventures become unequal
chances to get funds. It
significantly distorts the
entrepreneurial experi-
ence and knowledge. It
undermines the very
RISK environment we want to
cut off line
improve.

PART 2
ACTION PLAN

capitalists The essence of the
Amount of PLAYERS
entrepreneurs proposal discussed on the
potential
AWE meeting June, the
capital
18th 2009 is to increase
quality of entrepreneur-
ship in Atlanta. This in
turn reduces risks of
startups. The founders will
be able to plan, present
better and will have
additionally funded & RISK additional resources at
succeeding ventures hand to prepare ideas.

One of the basics in
startup risk reduction is
that the process requires
d
sta l ate E investment. Often it isn’t
rtu u mu ALU
pr acc ic V even money. Knowledge,
isk m
s
e c on o connections, basic
equipment for prototyping
can play a decisive role.
0 Yes, they are all invested
TIME resources. The general rule
expansion
ideation
is: the larger resources are
growth
early
available the better
seed
chances to succeed.

available resources
success threshold
Given the ingenuity of our
entrepreneurs, the
Atlanta
startup advancements are
ventures
closely correlated to the
resources available. Yes,
all resources are typically
acquired for money, but…

Most companies and all
individuals have skills and
other resources , which
are not required to do the
mainline business. These
are not profile reserves.
They perish in warehouses
or on the side line. A big
profile assets
Total available resources
portion of the reserves can
(work for business) be easily coaxed, but the
owners don’t truly realize
they exist (think an old
server on the attic or
knowledge of something
“useless”) The reserves are
not profile reserves called out of balance sheet
(not needed for business) reserves (OBSR).

available resources
success threshold
Mapping the entire
available in the
Atlanta
OBSR resources
entrepreneurship
ventures
community resources will
reveal that a big portion of
available resources is not
properly utilized.

available resources
Out of Balance Sheet
success threshold Reserves can’t be utilized
inside every and each
individual startup. But the
resources can be very well
used in the community.
Together we can! We need
to create market for an
Atlanta efficient exchange of
AOBS resources
ventures available talent,
experience, knowledge, IT
assets, etc. It will coax
resources needed to
advance our startups.

Understanding Startup cloud – Atlanta Entrepreneurship community – phase 2. For
activists. by Konstantyn Spasokukotskiy
What do you have to
offer? How can we know
about it? What do you
need? How we can
exchange? You name it!